Pac Bell CEO Hired for SBC Long-Distance

Published 4:00 am, Saturday, August 2, 1997

SBC Communications has tabbed Pacific Bell chief executive David Dorman to spearhead its entry into the lucrative but so-far elusive long-distance market.

Dorman, 43, has been named executive vice president of SBC, the Texas-based Baby Bell that acquired Pac Bell's parent, Pacific Telesis, earlier this year. He will report directly to CEO Edward Whitacre.

Ed Mueller, a 29-year veteran of SBC, will replace Dorman as the head of San Francisco-based Pac Bell, effective Monday.

In addition to managing SBC's long- distance effort, Dorman will oversee its Internet access operation and provide strategic direction for the entire company.

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But it is in long-distance that his influence may be felt the most.

Prior to joining Pac Bell, Dorman worked for Sprint for 13 years, helping it become the third-largest long-distance carrier in the nation. He was president of Sprint's business services division for two years before becoming president and CEO of Pac Bell in June of 1994.

"Dorman is probably one of the best guys that any of the Bell companies have to do long-distance," said analyst Anthony Ferrugia of A.G. Edwards in St. Louis.

In fact, Ferrugia said he believes Dorman was a key factor in SBC's decision to acquire Pacific Telesis last summer in a $16.5 million merger.

"My read on it is he's an important guy to Whitacre," Ferrugia said.

Dorman, who will move to San Antonio where SBC has its headquarters, said he is "very excited about the broader role I'll play in the company."

"With the merger, my job has necessarily gotten smaller than the one I came out here to take three years ago," he said. "So I was really pleased with the opportunity to work for Whitacre directly."

Dorman assumes his new post at a time when SBC, like other Baby Bells, is trying to crack the long-distance market.

In late June, the Federal Communications Commission turned down SBC's bid to provide long-distance service to its local phone customers in Oklahoma, saying the company had failed to open its local market to competitors as required by the 1996 Telecommunications Act.

Dorman defended SBC, saying it has complied with the laws governing deregulation. He said the company will continue "to work very hard to meet the letter of the law and keep pressing (the FCC and the courts) to let us in."

Mueller, 50, already has gotten his feet wet at Pac Bell, having worked under Dorman since the merger was completed in April. Prior to that he was president of Southwestern Bell, which is to SBC what Pac Bell was to Pacific Telesis.

"Having me come out here was pretty typical of mixing both teams together," he said.